Fox’s proposed $22 billion acquisition of streaming platform Roku has encountered a significant regulatory obstacle. On Tuesday, the Department of Justice (DOJ) issued a “second request” to both companies, demanding additional data and documentation as part of an enhanced antitrust review.
While such requests are a standard procedural step in major merger investigations, they indicate that federal regulators have substantial concerns that could not be addressed by the initial filings. According to the report, which was first made public by Semafor, the DOJ is scrutinizing how the deal might impact market competition and consumers before rendering a final decision.
The merger combines two dominant forces in the media landscape. Fox holds a vast portfolio of news, sports, and entertainment content, including its free, ad-supported streaming service Tubi. Meanwhile, Roku operates a critical distribution channel, with its operating system embedded in millions of televisions and streaming devices, giving it considerable influence over how audiences discover and access content.
Regulators are expected to examine whether a merged entity would disadvantage competitors. Key questions include whether Fox would prioritize its own services on the Roku home screen, exploit Roku’s user data to bolster its advertising business, or demote rival streaming platforms.
Fox CEO Lachlan Murdoch has publicly attempted to allay these fears, asserting that the two businesses would continue to operate independently under the new ownership structure.
This investigation arrives amid broader scrutiny of the DOJ’s handling of high-profile mergers. Critics have questioned whether political connections influence regulatory outcomes, pointing to the approval of Paramount’s acquisition of Warner Bros. Discovery as a case where billionaire Larry Ellison’s ties to President Trump may have played a role. Given the Murdochs’ own close relationships with the President, a rigorous review of the Fox-Roku deal could serve as a critical test of the DOJ’s impartiality.
The transaction is currently projected to close during the first half of 2027.
Does anyone else find it hilarious they’re calling this ‘independent operation’? I’ll believe it when I see it.
This screams antitrust violation. Letting a content giant buy the main distribution pipe is a recipe for squeezing competitors.